Customer boost for NTL

By THIS IS MONEY
Updated:

 

NTL, the UK's largest cable company, has reduced its losses after adding a record number of new customers.

The group said it signed up 205,500 new users in the three months to 30 June - but warned this pace may slow as it becomes more selective about the type of customers it takes on.

NTL said it would operate stricter credit screening in a bid to decrease bad debt, in a move that could lower the number of gross additions in the near term.

It said the new policy was right for the 'long-term health' of the business.

Adding in disconnections, NTL said its residential base grew by 66,600 customers to 3.26m, a 5.8% increase on the same quarter a year earlier.

Although revenues slipped 2.3% to £482.5m during the quarter, losses from continuing operations narrowed to £66.1m from a deficit of £267m last time. The improvement was helped by tighter cost controls, a reduction in interest payments and the impact of a debt restructuring on 2004's figures.

The group's business division was responsible for the fall in revenues after last year's figures were boosted by virgin.net. These revenues are now classed as consumer rather than business after NTL acquired the business in November 2004.

Revenues at the business arm, which supplies retail and wholesale voice, data and internet products and services to public and private organisations, fell 16.5% to £103.6m. They were also hit by factors such as the end of a contract with Vodafone.

• See how we broke the story of NTL's broadband upgrade

There was a 2.5% hike in revenues to £378.9m at NTL's consumer division, which supplies broadband internet, telephone and TV services to households. This also reflected the acquisition of virgin.net.

Across the first half of the year, losses on continuing operations narrowed to £132m from £345.4m last time.

NTL, based at Hook, Hampshire, emerged from bankruptcy protection in 2003 and began a major financial overhaul to generate new capital and reduce interest repayment charges. It organised a rights issue to raise £824.3m and trimmed its workforce, with 1,500 call centre staff losing their jobs in cuts announced in July last year.

The group completed the sale of its broadcast business on January 31, leaving it with a single cable business.

NTL, which has its shares listed in New York, announced yesterday it was speeding up its basic broadband connection in a move that will help customers download better quality video and television.

Chief executive Simon Duffy said today that NTL's broadband services would become among the 'most innovative in the world'.

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